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Looking forward through the rest of 2017 and into 2018 suburban Toronto is well positioned for a continuation of the strong occupancy growth it experienced in 2016. This marks a significant shift from near net zero absorption and rising vacancy from 2009 through 2015. Vacancy peaked in Q2 2016 at 14.1 percent and has since gradually declined to 13.0 percent in Q1 2017. Additionally, Toronto is expected to lead the country with a 2.9 percent increase in real GDP growth in 2017 and with a lack of available options for tenant expansion downtown, the gradual decline in vacancy is expected to continue.
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